Rapid7 announces plans to acquire DivvyCloud for $145 million

Rapid7 has announced that it has entered into a definitive agreement to acquire Divvy Cloud Corporation, a cloud security posture management company, for US$145 million.

The acquisition, which is to be paid in cash and stock, is expected to close during the second quarter of 2020.

"We are thrilled to welcome DivvyCloud, its customers, and the entire DivvyCloud team to the Rapid7 family," says Rapid7 chairman and chief executive officer Corey Thomas.

"With the acceleration of cloud adoption introducing new enterprise risk areas, we're excited to bring Security and DevOps teams together with DivvyCloud's best-of-breed compliance, risk management and governance for multi-cloud and container environments, while also integrating it with our Insight Cloud platform to create enduring customer value."

Adoption of cloud services is reaching record heights as remote working becomes the new norm, increasing the demand for collaboration tools, remote access services and video streaming platforms, among many other services.

But increased interaction with cloud services calls for a bolstered security and DevOps profile to manage the governance of organisations’ cloud and container environments, says Rapid7.

The acquisition of DivvyCloud's platform means Rapid7 customers will have the ability to innovate more securely, move out of data centres and into the cloud, and make infrastructure accessible and manageable, according to the company.

"DivvyCloud's technology, team, and market leadership in the cloud security space will enable Rapid7 to better serve its customers' needs by helping them innovate more securely, and provide a robust set of compliance and remediation paths for those with modern cloud infrastructure."